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Minchanka [31]
3 years ago
15

The economy is in equilibrium when Real GDP is . At this point, the economy is also in . Which of the following did Keynes argue

would be needed to move the economy to equilibrium at Natural Real GDP? Check all that apply. A decrease in consumption A decrease in government purchases An increase in government purchases
Business
1 answer:
grandymaker [24]3 years ago
4 0

Answer:

c. An increase in government purchases

Explanation:

Note: The full question is attached below

When the real GDP is $550, the total expenditure will be $450 + $55 + $70 = $575

When the real GDP is $600, the total expenditure will be $475 + $55 +$70 =  $600

Note: Graph showing total production and total expenditure is attached below as well. The economy is in equilibrium when real GDP is $600 ​​​​. At this point, the economy is also in recessionary gap.

Thus, an increase in government purchases will be needed to move this economy to equilibrium at natural real GDP.

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Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 55,870 Direct la
liq [111]

Answer:

 $16.66

Explanation:

Data provided

Direct material = $55,870

Direct labor hour = 475

Wage rate = $11

Machine hour = $556

Number of units = 4,100

Overhead rate = $13

The preparation of job sheet is shown below:-

Direct Material                $55,870

Add: Direct Labor           $5,225

( 475 × $11)

Overhead                         $7,228

($556 × $13)

Total                                  $68,323                      

Number of units                4,100

Cost per unit                      $16.66

($68,323 ÷ 4,100)

8 0
3 years ago
Suppose the multiplier is 5 and the government increases its purchases by $15 billion. Also, suppose the AD curve would shift fr
german

Answer:

A) 20 billion

Explanation:

Y = AD

   = C + I + G  

C = A + cY

A - Autonomous Consumption

c - MPC

Y = A + cY + I + G

Y - cY = A + I + G

Y(1 - c) = A + I + G  

Y = (A + I + G)*1/(1 - c)

Taking derivative with respect to goverement purchase  

dY/dG = 1/(1 - c)  

( here d is represting del we are representing partial derivative.)

1/(1 - c) = Multiplier

dY = Multiplier*dG  

     = 5*15  

     = 75

75 = horizontal distance between AD1 & AD2

55 = horizontal distance between AD1 & AD3  

Extent of crowding out = 75 - 55 = 20

Therefore, the Extent of crowding out is 20 billion.

3 0
3 years ago
Ashton wants to generate interest in the new branch of his hobby stores that is opening next week. He plans to offer temporary p
faust18 [17]

Answer:

B. Price promotion

Explanation:

Ashton by trying to create awareness in his new branch, he is planning to cut price and offer coupons so as to persuade customers to purchase from him. The practice is known as price promotion.

Price promotion is the combination of two words "price" and "promotion".

Price refers to the amount of money paid by consumers to purchase goods and services.

Promotion on the other hand refers to activities that persuade the consumers to buy a product and communicate the product’s features and benefits.

Combining the two definitions, pro promotion refers to a discount in price which will encourage consumers to purchase a product.

3 0
3 years ago
How people choose among the alternatives available to them is:?
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Propone dondthe demos dkkdndi
7 0
3 years ago
Write an essay on 'teachers and students'​
faust18 [17]

Answer:

A teacher is a beautiful gift given by god because god is a creator of the whole world and a teacher is a creator of a whole nation. A teacher is such an important creature in the life of a student, who through his knowledge, patience and love gives a strong shape to student's whole life.

8 0
2 years ago
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